2 no-brainer growth stocks to buy at $200 right now

You don’t have to have a lot of cash on hand to invest. Consistently investing even modest amounts of money and spreading that capital across different stocks through the market can help you amplify your returns over time. It is important to understand the business behind any stock you buy.

While the recent market volatility makes some investors afraid to put cash to work, if you have a more modest amount like $200, you can still get exposure to the businesses you want in your portfolio without it puts your financial health at risk.

Long-term investors can find opportunities to put cash into quality businesses in any environment: bull market, bear market, or anywhere in between. However, you should never invest money that you intend to take out soon to finance essential expenses.

On that note, here are two no-brainer growth stocks to consider if you have $200 to invest right now.

1. He and she

His and hers (NYSE: EL) has seen some volatility of late, but shares are still trading up about 116% over the 12-month period. The virtual care company’s business model revolves around recurring subscriptions, which patients pay to access repeated supplies of over-the-counter and over-the-counter products.

Users can also access a wide range of healthcare resources on the Hims & Hers platforms and one-on-one telehealth sessions with healthcare providers in various specialties. These include dermatology, mental health, weight loss, and sexual health and wellness.

Hims & Hers recently began selling GLP-1 (glucagon-like peptide-1) injections for just $199 a month as the company seeks to capitalize on the drug’s boom in treating a variety of concerns, including chronic weight management. The ability to pay a subscription to get not only quality medical care but also direct deliveries of vital medicines straight to your doorstep is a value proposition for Hims & Hers subscribers.

Revenue, profits and cash flow are growing for the business. Hims & Hers ended the second quarter of 2024 with 1.9 million subscribers, up 43% from the number of subscribers reported at the same time last year. The company posted profits of $13.3 million on revenue of $315.6 million in the three-month period.

That revenue figure was up 52 percent from a year ago, while Hims & Hers had reported a net loss of $7.2 million in the comparable quarter of 2023. Free cash flow for the three-month period came just under $48 million. Hims & Hers looks like a great way to invest in the present and future of healthcare, and its rapidly improving financial base could bode well for generous and prolonged investor returns.

The story continues

2. Shopify

Shopify (NYSE: STORE) has faced the changing tide of consumer and investor sentiment over the past few years. Growth has slowed from the upward trajectory witnessed at the peak of the pandemic, and many investors have jumped.

Layoffs, fluctuating profitability and a surprise sale of its logistics business shortly after expanding its distribution network were all things that understandably worried some investors. However, Shopify seems to be making steady progress on the financial front and remains the market leader in global e-commerce solutions.

In the second quarter of 2024, gross merchandise volume rose 22% year-over-year to $67 billion, with revenue rising 21% to $2 billion. Driving these numbers was a 27% increase in subscription solutions revenue, partly due to the onboarding of new merchants and price increases for Shopify’s subscription plans. In addition, revenue from merchant solutions increased by 19%.

Shopify’s free cash flow of $333 million was more than three times the figure reported in the same quarter last year, and it ended the quarter with $5 billion in cash and investments. Looking longer, over the past 12 months, Shopify brought in $1.3 billion in net income on $7.8 billion in revenue.

While economic turbulence could affect e-commerce spending in the short term, the outlook for the industry remains strong in the long term. With a multi-trillion dollar addressable market, Shopify has plenty of room to succeed in a fragmented industry where it remains a key player. This is an opportunity that investors may want to capitalize on with a multi-year buy-and-hold position.

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Rachel Warren has positions in Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy.

2 No-brainer Growth Stocks to Buy in the $200s Right Now was originally published by The Motley Fool